ATEC, CCUR and CKP earnings updates

Checkpoint Systems (CKP)

Q3 earnings update11/4/2015.

CKP announced Q3 2015 earnings (quarter ended September 30, 2015) this morning. Revenues were $146 million down from $161 million last year. They made a Non-GAAP profit of $.07 per share versus a $.22 profit last year. Foreign currency impact was most of the sales decline (over 90%). They reduced their guidance for next the year to $575-$600 million down from $625 million at the top end and Adjusted EBITDA of $50-$60 million down from $55-$68 million. They also announced an accounting error in their previous quarterly reports this year in how they accounted for income taxes, but according to their 8K, the errors have no impact on cash flow, or any other pre-tax numbers. Nevertheless not good news.

Our valuation fell a bit to $17.98 from $18.28. We maintain this as a BUY.

Concurrent Computer (CCUR)

Q3 earnings update11/4/2015.

CCUR announced Q1 2016 earnings (quarter ended September 30, 2015) last night. Revenues were $13.4 million down from $13.8 million last year and from $17.5 million last quarter. They had a loss of about $900,000 excluding the $4.1 million gain on the sale of their video analytics business. Overall, not a great quarter. Our valuation actually rose to $12.45 from $11.49 last quarter on gross margin expansion. We really think it is time for this company to be sold. We are maintaining a HOLD on this for now.

Alphtec Holdings (ATEC)

Q3 earnings update11/4/2015. 

ATEC reported Q3 2015 earnings last night (quarter ended September 30, 2015). Revenues were $43 million down from $51 million last year and they broke-even on a Non-GAAP basis versus a $.01 loss last year. They did write-off $165 million of goodwill and intangibles in Q3. Our valuation fell to $1.82 a share from $2.07 last quarter. They have/are introducing new products and cutting costs, so we think this may be the bottom. In any event, ATEC is trading at less than 25% of our valuation and we are we think this is a BUY here.




  1. According to last CC, within the next ten weeks there should be an announcement on debt refinancing. If that goes well, I could foresee a really big spike.

    I realize you are pegging the value at $1.82 but at this point, a lot seems to hinge upon refinancing.

    Do you have any guess or comment as to their chance of getting an approval? What is downside if they are forced into a plan B?


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